"Sen. David Vitter, R-La., who supports the Senate version of the Fed-audit legislation, condemned the Fed's actions on Thursday. "Chairman Bernanke and the Federal Open Market Committee are clearly feeling tremendous pressure to bail out the economy because of President Obama's struggle to turn around the jobless numbers," he said in a statement. "The cost of this open-ended easy money policy dramatically outweighs the short term benefits. The Fed's move today puts us on the fast track to rampant inflation and potentially a return to a world with twenty percent interest rates," he said. " [underline is mine]
Which would be worse?
(A) he actually believes that QE3 could lead to rampant inflation and 20% interest rates. In which case he is clearly nuts (see graphs below).
(B) he believes that QE3 could help the economy and thus increase Obama's chance of re-election. In which case he is willing to sacrifices the public good for potential political gain ala Senate Leader Mitch McConnell
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